NEWS
NCC Approves 50% Tariff Increase On Phone Calls, Data, SMS
The Nigerian Communications Commission (NCC) has approved a 50 percent increase in tariffs for phone calls, SMS, and data services, sparking mixed reactions from stakeholders and subscribers.
This adjustment raises the minimum price of calls to N9.6 per minute from N6.40 and increases the maximum price to N50 per minute. The average cost of calls now stands at N16.5 per minute, up from N11. SMS charges have risen to N6 from N4, while the cost of 1GB of data has climbed to N431.25 from N287.5.
In a statement signed by its Director of Public Affairs, Reuben Muoka, the NCC explained, “The adjustment, capped at a maximum of 50 percent of current tariffs, though lower than the over 100 percent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability.”
Telecom operators have long advocated for tariff hikes due to rising operational costs. Since 2023, factors such as the significant devaluation of the naira and inflation, which reached 34.8 percent in December 2024, have worsened their financial challenges. According to the NCC, tariff rates have remained unchanged since 2013 despite a 300 percent spike in operating costs.
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Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, previously indicated that telecom prices would rise by 30 to 60 percent, aligning with the NCC’s decision.
The commission justified the tariff hike as a necessary step to bridge the gap between operational expenses and current rates while ensuring service delivery is not compromised. “These adjustments would support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity, including better network quality, enhanced customer service, and greater coverage,” the NCC stated.
Telecom firms, including MTN Nigeria and Airtel Nigeria, have promised to channel the increased revenue into improving network infrastructure. MTN’s CEO, Karl Toriola, said, “This balance of tariff increases, alongside investment commitments, means that not only will the telecoms industry have the confidence to invest and a clear pathway back to sustainability – but the higher prices will lead to better networks, more relevant services, and so the better customer experience that enables growth.”
Despite these assurances, consumer groups like the National Association of Telecoms Subscribers (NATCOMS) have expressed concerns. “This, undoubtedly, is against the public interest, contrary to the false narrative of NCC that described the recent adjustments as pro-public interest,” NATCOMS stated.
As subscribers brace for higher telecom costs, industry stakeholders remain hopeful that the hike will result in long-term benefits for Nigeria’s growing demand for digital services.
Nigeria’s total public debt soared to N142.3 trillion as of September 30, 2024, marking a 5.97 per cent increase from N134.3 trillion in June 2024, according to data released by the Debt Management Office (DMO). The rise in public debt underscores the growing impact of naira depreciation on external obligations.
While external debt in dollar terms saw a marginal rise of 0.29 per cent—from $42.90 billion in June to $43.03 billion in September—its naira equivalent spiked by 9.22 per cent due to the naira weakening from N1,470.19/$ to N1,601.03/$ within the period.
Domestic debt also showed mixed trends. In dollar terms, it dropped by 5.34 per cent, from $48.45 billion in June to $45.87 billion in September. However, its naira value increased by 3.10 per cent, climbing from N71.22 trillion to N73.43 trillion.
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Federal Government bonds remained the largest component of domestic debt, growing by 4.47 per cent to N54.65 trillion in September. Meanwhile, promissory notes, often used for settling government obligations, rose by 5.80 per cent to N1.77 trillion.
Economic analysts have raised concerns about the sustainability of Nigeria’s rising debt, particularly as interest payments consume a substantial portion of government revenue. Dr. Muda Yusuf, CEO of the Centre for the Promotion of Public Enterprises, warned of the risk of a debt trap. He emphasised the importance of managing public debt growth and reducing reliance on foreign loans due to exchange rate pressures.
Despite these challenges, the Federal Government is pressing forward with reforms aimed at economic growth. Minister of Budget and Economic Planning, Abubakar Bagudu, noted during a presentation to lawmakers that initiatives such as the Renewed Hope Infrastructure Fund and tax reforms aim.
As Donald Trump began his second term as president, Wall Street opened higher on Tuesday, buoyed by declining US Treasury bond yields that eased inflation concerns.
The positive market response followed Trump’s inaugural speech and a flurry of executive orders on immigration, energy policy, and other key issues.
Trump also announced plans to impose 25% tariffs on Canada and Mexico starting February 1, a move that briefly slowed equity futures but did not derail overall market gains.
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“The tariff announcement took a little steam out of the equity futures trade, but didn’t steamroll that trade,” commented Patrick O’Hare, an analyst at Briefing.com.
By early trading, the Dow Jones Industrial Average had risen 0.6% to 43,759.19, the S&P 500 gained 0.4% to 6,022.35, and the Nasdaq Composite Index edged up 0.1% to 19,639.92.
The market’s gains coincided with a dip in US Treasury yields, signaling reduced investor concerns about inflation following favorable consumer price data released last week.
Despite the positive market response, analysts warned that proposed tariffs and other policy measures could reignite inflationary pressures, potentially complicating the Federal Reserve’s monetary strategy.
Osun State Governor, Senator Ademola Adeleke has congratulated the newly appointed Director General of the Presidential Enabling Business Environment Council (PEBEC), Princess Zahrah Mustapha Audu.
In a statement on this in Osogbo on Tuesday, Gov Adeleke described her as “a fitting choice for the high profile office”.
In the congratulatory message, Gov Adeleke pointed to her appointment as “a testament to her exceptional leadership qualities, her unwavering commitment to excellence, and her proven track record of delivering results-driven solutions.”
He added that “As a state, we are thrilled to see a friend of Osun state excelling on the national stage, and we have no doubt that Princess Zahrah will make a significant impact in her new role.
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“I am delighted to hear about Princess Zahrah’s appointment, and I must say that the President has made an excellent choice. Princess Zahrah is a focused-driven, dedicated, and result-oriented personality who will undoubtedly bring her wealth of experience and expertise to bear in her new role.
“As a testament to her exceptional leadership qualities, Princess Zahrah has consistently demonstrated her ability to deliver results in her previous endeavors. Her appointment as the DG of PEBEC is a well-deserved recognition of her hard work and dedication.
“I wish her a successful tenure as the DG of PEBEC. I have no doubt that she will make a significant impact in her new role and contribute meaningfully to the growth and development of our great nation.”
Princess Zahrah succeeded Dr Jumoke Oduwole who was appointed Minister of Trade and Investment.
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